Public Sector Contracts

Public sector contracts are affected by changes in IR35 legislation that came into effect on the 6^th of April 2017. These changes are explained here.

Your best choice of working arrangement will depend on whether your contract is caught by IR35 legislation. Usually if your contract is considered inside IR35, umbrella employment would be the best way for you to operate. Where a contract is considered outside IR35, being a director of your own limited company is often the better option.

If some of your assignments are caught by IR35 but others are not, our Orange Genie Complete option allows you to be a director of your limited company and use umbrella employment when you need to at no additional cost.

Your public sector client will inform you and your agency (if relevant) if IR35 applies or not.

Your Own Limited Company

Umbrella Employment

Orange Genie Complete

Recommended if your Client/Agency confirm IR35 does not apply
You will invoice your Client/Agency and they will pay your company gross
You will account for payment outside IR35
Your Orange Genie accountant will help you operate your company as tax efficiently as possible

Recommended if your Client/Agency confirm IR35 does apply
This means all income must be paid through PAYE and reported to HMRC
Your umbrella employer is responsible for deductions and real time reporting to HMRC
You will receive your net pay from your umbrella employer

Recommended if your Client/Agency confirm IR35 does apply and you want to keep your limited company for future contracts – that are in the private sector or would be outside of IR35
Keep your limited company with Orange Genie Accountancy and benefit from umbrella employment at no additional cost
Your limited company will be available for future contracts where IR35 does not apply